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Binance Research: JP Morgan Coin Could Potentially Increase Adoption


Adoption is still something that many crypto observers believe could trigger another bull run. In 2017, Bitcoin was able to reach near $20K level despite starting at around $1,000. Unfortunately, after more than a year, the cryptocurrency lost around 80% during its correction.

According to the research department of Binance cryptocurrency exchange, Binance research believes that there is a chance that JP Morgan coin could potentially trigger adoption in the market. It is possible that JP Morgan’s attempt to have their own cryptocurrency could introduce blockchain technology to institutional investors and therefore give cryptocurrencies a chance.

JP Morgan’s Stablecoin

For those who believe in the decentralized nature of cryptocurrencies, many believe that JP Morgan’s attempt in blockchain technology isn’t exactly the same as cryptocurrencies. One, the JP Morgan coin will only be available internally.

And also, the JP Morgan Coin is a stablecoin. It is going to be pegged to a US dollar. This means that it can withstand the volatile nature of cryptos. According to the Binance Research notes, “The rise of this third generation of stablecoins may only be an intermediate stepping stone for cryptocurrency mass adoption. Stablecoins running on private blockchains will contribute to increasing awareness of the rest of the blockchain and cryptoasset industry in the long run”.

Now, JP Morgan doesn’t pose as a threat to the stablecoin market because it is running on a private network. As for being a potential competitor against other cryptos in the retail sector, there really is no certainty today if the JP Morgan coin is going to be used by the retail sector.  However, according to the JP Morgan CEO Jamie Dimon, he mentioned that there is a chance that individuals could pay using the coin in the future.

Is It a Threat to XRP?

Ripple has targeted banks in their attempts to lessen cross-border transactions. It has partnered with banks and even with Western Union. Now, could it be possible that Ripple and JP Morgan is going to compete against each other? According to Binance Research, “The two projects (Ripple and JPM Coin) appear to have different focuses and potential applications in the short term. While there is currently no direct overlap on the functionality of the two initiatives, future developments on the reach of JPM Coin outside its existing closed network will determine to what degree Ripple and JPM Coin will compete”

It only means that it is too early to tell whether or not Ripple and JP Morgan is going to go against each other. If you will look at the history of JP Morgan, the creation of the JPM Coin is a 180-degree turn from their previous stance against cryptocurrencies. If you are going to ask Brad Garlinghouse who is the CEO of Ripple, he believes that JP Morgan is missing the point of cryptocurrencies.

However, according to the report by Binance, if the JPM Coin is going up against stablecoins, it is likely that it is going to be the market leader. The combined market cap of all stablecoins is below $3 billion US dollars. However, when it comes to JP Morgan, the bank handles around $6 trillion US dollars in assets. Could it possible that we are going to see more of the JPM Coin in the future?

John Jayme

John is a crypto investor, enthusiast and copywriter. He is in charge of daily news and other emerging trends in blockchain technology.